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Unrelated Business Taxable Income - UBTI

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Dictionary Says

Definition of 'Unrelated Business Taxable Income - UBTI'

Income regularly generated by a tax-exempt entity by means of taxable activities. This income is not related to the main function of the entity, but is needed to generate a small portion of income.
Investopedia Says

Investopedia explains 'Unrelated Business Taxable Income - UBTI'

If an investor holds an Individual Retirement Arrangement (IRA), and the fund generates income which qualifies as UBTI, the fund may be subject to taxation.

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